Is it worth it? Refinancing costs money. If you’re looking to refinance in order to secure a lower interest rate, you have to pay closing costs again. These can include bank fees, appraisal fees and attorney fees, among other things. These costs usually fall between 1-2% of your total mortgage balance.

Is this the right move for my unique position? Every situation is different but a very common refinancing situation we run into is a homeowner who hasn’t owned the home for long, but wants to refinance. Most of these people have 30-year loans but won’t likely stay with the home for 30 years. Talk to your lender to find out if simply paying more each month will save you more money than a refinance.

What are my other financial goals? While switching from a 30-year loan to a 15-year loan can save you a lot of money over the life of the loan, there are other factors to consider. Again, you won’t likely have the loan for the full 30 or even 15 years -so you aren’t fully benefiting from the shorter-term loan while you’re paying more. It’s vital to consider all of your financial goals. Will the 15-year, higher monthly payment hold you back?